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18 May 2021
I just settled with a large company, for an injury that required surgery due to their negligence, and received a lump sum payment. The time between the injury and settlement was 5 years. Is this personal injury compensation taxable?
Most helpful response
ATO Certified Response
19 May 2021
If you've made a personal injury claim and you agree to a settlement, or a court order is made in your favour, it will be tax-free, provided certain conditions are met.
You can find details on specific circumstances on our website for Structured settlements – examples.
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